Purchasing

Select Supplier

KeHE (kay-hee)

$750 minimum; average order $1K minimum (as of August 2016).  At current discount Good Stuff’s pricing is better for most products.  Product catalog and ordering online at retailer.kehe.com.  When we use the Nutriate login to that site, we’re viewing and ordering specific to KeHE (Nature’s Best) in Stockton and under the Nutriate Corporation account #805422.  Can also order over the phone (KeHE in Brea at 1-800-800-7799) or via email.  See Capsule entries for ‘KeHE – Nature’s Best – Stockton’ and ‘KeHE Distributors – Corporate’.

June 2016: Switched to delivery to Site 1 (from will call in Stockton).  Refer to the ‘Coordinate Delivery’ section below.

KeHE Support (trouble ticket system).

Place Order

• Update ordering spreadsheet including, as appropriate, the more deeply discounted items listed in the current “New @ KeHE” and “Marketing Monthly” fliers (available on the home page and as email attachments from our KeHE Rep, Ignacio Mendez-Nunez), and referring to the online Product Catalog.  Sort columns (excluding the Tot(als) columns) by ItemName, A to Z, with headers.
• Create a Purchase Order in Xero referring to the spreadsheet, the online KeHE catalog, and the discounts in the current “New @ KeHE” and “Marketing Monthly” fliers.  As needed, create and update inventory in Xero.
• Place order on the KeHE portal: from the home page, click on ‘Orders’, copy and paste UPC codes from the spreadsheet for order.

KeHE Portal

• Go to http://retailer.kehe.com.
• If not presented with login screen, click on ‘Portals’, ‘Retailer Portal’, and then ‘Retailer Login’.
• Enter user name and password.
• From home page, reference the Product Catalog and current and next months’ fliers, enter Orders, or review past and open invoices.
• Logout or close the window.

Coordinate Delivery

Contact Louis Fernandez in the Stockton Transportation Office (TO) by email or phone and document interaction in Capsule.  Schedule for after 8:30am (to avoid conflicting with morning traffic M-F or waking people up on Saturday) and for hand truck (not pallet) delivery to side entrance on 3rd Street.  Delivery is usually one or two work days after order is placed.  Currently scheduled for ordering about once every four weeks.  Joseph delivers to Alameda (South Shore Mall – Trader Joe’s??) on Fridays but in a big rig.

Backup: call or email Michael (Mike) Leslie (michael.leslie@kehe.com or 209-851-4040), May (209-851-4035), Louis, or Marilyn in the Transportation Office.

Clear 3rd St curb of vehicles.  Sweep side path and side entryway.  Create Nutriate calendar entry.

Pick Up Order

• Orders ready one work day after order placement.  Print order from KeHE and note KeHE invoice number and Nutriate account number.  Confirm pick up with May in the Transportation Office at 209-851-4035.  Take a cooler or freezer bags as needed.
• Pick up at Nature’s Best, 4650 Newcastle Road, Stockton, CA 95215.  6:30am? – 5pm.  150 miles round trip from Site 1; 1.5 – 2 hours each way.  880S, 580E, 205E, I-5 N, exit 468 (French Camp Rd S), right (east) on Arch Airport Rd, continue on Arch Rd, left on Newcastle Rd, KeHE complex to the right.  The first gate is exit only (for big trucks); continue past the building and enter at the guard’s gate.  The Transportation Office is in the front right corner of the building.  May sits just inside the cubicle area behind the door to the left in the corner reception area.  Coordinate with May to have order brought to a loading dock; back car up the appropriate ramp (185 is just around the corner from May’s office); and wait for the doors to open.  Specify will call for loading into a car without the pallet.  (Receiving: 209-851-4048, M-F receiving 12 – 5am)  Marilyn is also in TO; Virtue is upstairs; and Michael (Mike) Leslie is a Transportation Manager.
• Compare order to PO and follow regular Receiving procedures.

Good Stuff

$500 minimum.  Good Stuff can special order some items but it depends on the vendor.  Delivery is typically next work day to Site 1.  Macy Lau, macy@goodstuffdist.com, 415-647-6617 x102.

Placing Order

• Review latest catalog PDFs (email attachments) and compare to KeHE and other distributors.
• In Xero, create a PO (using the ‘New Purchase Order’ instructions below).  As needed, create new inventory items; include CRV (see the ‘Tax and CRV’ section of the Fulfillment post).  Submit PO for approval.  Use the ‘Send’ button to email the PO to Macy at Good Stuff.

World Pantry

• Beanfield’s – 2 case minimum / order some flavors through KeHE
• Lotus Foods – order through KeHE
• Numi – order through Good Stuff
• Peeled Snacks – ?

Misc

Create PO in Xero.  Send PO to vendor from Xero.  Receive invoice from vendor; pay with CNP’s MC.  Send CNP copy of the invoice for expense report.

• Beanfield’s – order through KeHE (with an option to order direct via World Pantry, 2 case minimum)
• High Brew Coffee – order through KeHE (or Bay Area Distributing)
• Kohana Coffee – order direct
• Laughing Giraffe – order direct / order some flavors through KeHE
• Living Intentions – order direct, $200 minimum to avoid shipping charges
• Lotus Foods – order small quantities through KeHE; order large quantities direct for pickup in Richmond
• megumiNatto – order direct; $15 shipping charge
• MaryJanesFarm – order direct (email PO from Xero); no minimum but shipping charge added
• Naked Edge Veggie Go’s – order direct (much better margin than via KeHE)
• Sonoma Creamery – some Mr. Cheese O’s flavors through KeHE; rest of line through Mike Hudson

New Purchase Order

• Create purchase order in Xero.
  • Login to Xero
  • Click on the ‘Accounts’ tab and then on ‘Purchases’.
  • Scroll down and click on ‘See all’ to the right of ‘Purchase orders’.
  • Click ‘+ New Purchase Order’.
  • In the ‘Contact’ box enter the vendor name.  If the vendor is not already in the database, use the ‘New Vendor’ instructions.
  • In the ‘Delivery Date’ pull-down select the expected delivery date.  The ‘Date’ box should show the current date.  Leave the ‘Reference’ box blank unless instructed otherwise.
  • In the first ‘Item’ box start typing the first product.  If the product is not already in the database, use the ‘New Product’ instructions.
  • Adjust the ‘Quantity’ as applicable.  (Unless otherwise noted, the item UPCs are not case UPCs.)
  • Adjust the ‘Discount’ as applicable.
  • Repeat for other products purchased.
  • If shipping and handling and/or insurance is not included in the product cost, enter that as a separate item selecting ‘Shipping/Insurance’, account ‘5010 – Inventory Shipping / Insurance’.
  • Click on ‘Add a note’ to specify payment method, and, as needed, further details on delivery.
  • Add CRV (and CRV tax) as applicable.
  • Scroll down to the bottom and click on the ‘Save’ pull-down.  Click on ‘Save & submit for approval’.
  • Note the new PO number.
  • Log out of Xero.
• Email COO (Curtis) requesting his approval in Xero of the PO (referencing the PO number).

New Product

• Prepare by determining the UPC, wholesale and retail prices (SRP or MSRP – manufacturer’s suggested retail price), and units per case.  Calculate 32% profit (wholesale / .68), round up to the nearest $0.09, and set the retail price to that value or to the SRP if it’s higher.
• Create the new product in Xero.
  • (Login to Xero.)
  • Click on the ‘Accounts’ tab and then on ‘Inventory’.
  • Search for the product by brand or UPC.  If it doesn’t exist, then click on ‘+ New Item’.
  • Enter the UPC in the ‘Item Code’ box.  In the ‘Item Name’ box enter the product name starting with the brand name, a dash, salient words from the product name, a dash, and the size/weight/volume and type of container (such as “16 oz can” or “1 lb pouch” – note the blank space between the value and unit).  (Container types include: bag, bulk, pouch, box, and bottle.)
  • After ‘I purchase this item’, enter the wholesale (per unit) price under ‘Unit Price’, select ‘5000 – Cost of Goods Sold’ from the ‘Purchases Account’ pull down, and ‘Tax Exempt (0%)’ from the ‘Tax Rate’ pull down.  As needed, expand the product name.  Add ‘, units per case’ (“12 per case”, for example) to the text under ‘Purchases Description’.  Add other details as is appropriate.
  • After ‘I sell this item’, enter the retail (per unit) price under ‘Unit Price’ (using the price listed by KeHE; if not in KeHE, then use the highest price listed in Amazon or on some other site or vendor sell sheet).  Select ‘4000 – Sales’ from the ‘Purchases Account’ pull down.  Select ‘Tax Exempt (0%)’ from the ‘Tax Rate’ pull down unless the item is a carbonated beverage (including the Steaz soda but not naturally carbonated drinks such as GT’s Kombucha), dietary supplement (such as the SCD probiotics and the Nuun drink tablets), or a non-consumable including items such as breath mints; select ‘Tax on Sales (0%)’ for these types of items.  Copy the expanded description excluding the case count from ‘Purchases Description’ into ‘Sales Description’.
  • Click on the ‘Save’ button (or on the ‘Save’ pull down and then on ‘Save & add another’).
  • (Log out of Xero.)

Price Increase

If our cost increases, raise the retail price in Xero, draft invoices in Xero, and, if applicable, in Shopify by an amount that maintains our margin.  For example, if our cost increases from $1.95 to $2.25 ($0.30) then our retail should increase from $3.60 to $4.15 not just to $3.90 ($0.55 increase to maintain a 46% margin rather than a flat $0.30 increase to both the cost and retail price which results in a 42% margin).

Or, if KeHE increases the price, raise the price accordingly (even if we don’t purchase from KeHE).

New Vendor

• Click on ‘Contacts’ and then ‘Suppliers’.
• Click on the ‘Add contact’ button.
• At a minimum enter the company name in ‘Contact Name’ and enter the contact information for purchasing (‘Primary Person’ and ‘Email’).
• Click on ‘Save’.